Karvy Stock Broking Limited has maintained ‘Buy’ rating on KS Oils stock to achieve a target of Rs 48 within 1-2 days.

According to Karvy, day traders can buy the stock above Rs 46 with a stop loss of Rs 44.50. If the stock market remains on positive track, the next target will be above Rs 47.  

Shares of the company, on Wednesday (Feb 25), closed at Rs 44.40 on the Bombay Stock Exchange (BSE). The total volume of shares traded at the BSE was 922666. Current EPS & P/E ratio stood at 4.67 and 9.46 respectively. The share price has seen a 52-week high of Rs 101 and a low of Rs 30 on BSE.

For the three-month period ended December 31, 2008, K S Oils announced a substantial growth in its standalone net profit. During the period, the company’s net grew 32.84% to Rs 430.80 million, as against Rs 324.30 million during the corresponding period last year.

Net sales during the quarter climbed 47.93% to Rs 8,338.50 million, whereas total income increased 47.90% to Rs 8,361.90 million.

The company announced EPS Rs 1.23 per share during the quarter.

During the three month period, the company’s operating margin came up by 20.75 basis points to 10.72% compared with the last year period.

Mr. Sanjay Agarwal, company’s MD said that strong customer demand for healthy oil is aiding the company to grow on a steady basis. Retail led brand sales and augmented geographic penetration in central as well as western India is assisting KS Oils to expand and grow its markets and increase profitability continuously.

K S Oils is a top integrated edible oil company and is the trusted name behind well-known brands including Kalash, Double Sher, K S Gold, among others. The company presently holds 7% market share in the entire mustard oil sector with a leading 25% market leadership in branded mustard oil.

Other stocks from the same sector that looks good for short-term as well as long-term trading includes Gokul Refoils and Ruchi Soya.